Oil Prices Jump as U.S. Strikes in Iran Raise Fears Over Strait of Hormuz Supply Disruptions

Brent crude oil futures surged nearly 2% during early Asian trading on Tuesday after the United States launched military strikes in southern Iran, escalating tensions in the Middle East and renewing concerns about global oil supply disruptions. The latest developments pushed energy markets higher as traders closely monitored the ongoing conflict and negotiations between Washington and Tehran.

Brent crude futures climbed by $1.40, or 1.5%, reaching $97.56 per barrel after suffering a sharp 7% decline in the previous session. Meanwhile, U.S. West Texas Intermediate (WTI) crude traded at $91.25 per barrel, slightly higher than Monday’s last traded level but still down more than 5% from Friday’s close due to the U.S. Memorial Day holiday.

According to the U.S. Central Command, the strikes targeted missile launch sites and boats allegedly attempting to place mines in southern Iran. Washington described the operation as a defensive move aimed at protecting U.S. forces from threats posed by Iranian military units.

Iranian state media reported explosions near Bandar Abbas and coastal regions surrounding the Strait of Hormuz, a critical shipping route responsible for roughly 20% of global oil and gas transportation. Since the conflict began three months ago, Iran has significantly restricted non-Iranian shipping traffic through the Gulf, contributing to a major increase in global energy prices.

Markets were also focused on diplomatic efforts underway in Qatar, where Iranian officials met with Qatari leaders to discuss a possible ceasefire agreement with the United States. Reports suggest the proposed deal could include the removal of mines from the Strait of Hormuz within 30 days, potentially allowing international shipping to resume safely.

Analysts warned that while negotiations appear promising, uncertainty remains high, and any breakdown in talks could trigger further volatility in crude oil markets throughout 2026.